UK Car Insurance Premiums Rise by 39.3%

The latest AA Insurance report on cover premiums suggests that most UK insurers are cutting back on cheap deals as they realise that profits are more important than new customers.

As such, the prices have increased in the past 12 months. As of September 30th, the cost of previously cheap car insurance deals jumped by 39.3% and now stands at £792. The pace of increases in cover premiums is the highest ever registered since 1994.

The reason behind this staggering price growth is a combination of large number of accident and injury claims, increased fraud and higher advertising costs. Commenting on the findings, Mr. Simon Douglas of AA said that an average claim increased indeed to £123 for every £100 taken in premiums.

The research of AA Insurance is supported by data earlier released by EMB, a specialist non-life insurance consultancy, and online comparison source Confused. They revealed that average car cover premiums in Great Britain jumped by 37.5%.

You can buy cheaper car coverage if you compare deals online prior to making a decision.